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The Tax Loophole That Won’t Die

The Tax Loophole That Won’t Die

Update: 2022-08-159
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Carried interest is a loophole in the United States tax code that has stood out for its egregious unfairness and stunning longevity. 

Typically, the richest of the rich pay 40 percent tax on their income. The very narrow, select group that benefits from carried interest pays only 20 percent. 

Earlier versions of the Inflation Reduction Act targeted carried interest. But the loophole has survived. Senator Kyrsten Sinema, Democrat of Arizona, demanded her party get rid of efforts to eliminate it in exchange for her support. 

How has the carried interest loophole lasted so long despite its obvious unfairness? 

Guest: Andrew Ross Sorkin, a columnist for The New York Times and the founder and editor-at-large of DealBook.

Background reading: 

For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday. 

Comments (7)

Enrico Seebach

nobody is surprised Joe and this hoe are bought and paid for

Aug 16th
Reply (1)

Corey Shaker

What this complete asshat leaves out is that the people who invest and enjoy capital gains tax at a lower rate have already paid taxes on the money they are investing.

Aug 15th
Reply (4)
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The Tax Loophole That Won’t Die

The Tax Loophole That Won’t Die

The New York Times